The cup with handle pattern foreshadows an upward price continuation following market hesitation, and a test toward a possible downward move.

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In the contemporary marketplace, technical analysis is king. Subsequently, having a working knowledge of forex charts analysis and how to read forex chart patterns is invaluable to the modern currency market participant. Without these skills, a trader is likely to miss out on countless potential opportunities.
When approaching the forex from a technical perspective, the pricing chart is the window to the marketplace. In contrast to the graph paper of decades past, advanced software trading platforms automatically chart pricing data at the user's direction. From intraday Japanese candlestick charts to weekly Open High Low Close (OHLC) price bars, the only limit of forex charts analysis lies within the imagination of the trader.
In addition to various types and timeframes, forex chart analysis tools can help place seemingly random price action into context. Their functionality is extremely useful, as unexpected volatility can make once orderly markets appear disjointed. Fortunately for active traders, a multitude of forex chart analysis tools and indicators are now readily available for implementation. A few of the most popular are Fibonacci retracements/projections, moving averages, momentum oscillators and forex chart patterns.
When it comes to technical analysis, learning how to read forex chart patterns is essential. Patterns come in a variety of forms, each relaying unique information to the trader. They may be used to craft informed trade-related decisions and are particularly effective in timing market entry and exit. From scrutinising trend strength and potential continuation to anticipating reversals, forex chart patterns are powerful indicators.
As with almost everything market-oriented, forex trading chart analysis functions best within the context of a comprehensive strategy. The structure provided by a detailed plan can help to augment the effectiveness of any forex chart or indicator. Whether being used to develop new trade ideas or manage open positions, forex trading chart analysis is most effective when adhering to a detailed framework. No matter the level of sophistication, chart analysis can bring value to your approach to the global currency markets.
The combination of leverage, volatility and liquidity make the forex attractive to many individuals. However, trading currency pairs on margin involves the risk of financial loss. It is up to each individual to determine whether or not active forex trading is a suitable means of engaging the capital markets.
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination.
The cup with handle pattern foreshadows an upward price continuation following market hesitation, and a test toward a possible downward move.
Dark cloud cover is a Japanese candlestick charting pattern that aids technical traders in identifying the exhaustion of bullish price action.
A doji is a candlestick with a closing price very near to its opening price. It is unique to other candlesticks because its body is very small or nonexistent.
The morning star chart pattern is a convenient way to spot an upward reversal and a subsequent bullish trend without a complex set of technical indicators.
The hammer is an easily identifiable candlestick charting formation that often foreshadows a bullish reversal and can be useful in tracking short-term price action.
Pipe bottoms and pipe tops provide the trader an indication that a prevailing trend may continue or may be coming to end.
Technical analysts can use simple geometric patterns such as triangle chart patterns to unveil signals that can indicate where the market could go next.
Among visual chart patterns, the head and shoulders pattern has gained status among the most reliable predictors of future price action.
Among visual indicators, the double top and double bottom are considered amongst the most convenient and reliable for trying to predict a turnaround in price tendencies.
The easily identifiable double-top and head-and-shoulders chart formations are well known patterns for trying to predict trend reversals. Another reversal pattern that shows similar characteristics is the triple-top, triple-bottom formation.…
A pattern that is similar in shape to the triangle, but with some special differences, is the wedge. Like the triangle, the wedge is characterised by converging price lines and…
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.